Despite a stark drop in the national unemployment rate reported
Friday, economists warned it will take decades for the labor market to
return to pre-recession employment levels if the economy's achingly slow
growth continues.

The U.S. economy added 120,000 jobs in November -- falling short of
economists' expectations -- while the unemployment rate dipped from 9.0
to 8.6 percent, the Bureau of Labor Statistics reported Friday morning.
But roughly half of the decline in the unemployment rate came from the
315,000 Americans who dropped out of the labor market last month, in
part a reflection of the slow pace of the recovery, economists said.

"When unemployment is this high for this long, it's very likely that
most of the people dropping out are doing so because they can't find
work," said Heidi Shierholz, an economist at the Economic Policy
Institute, who has studied the shrinking labor force during the years
since the recession began. "There is some movement here, that's true.
But it's just so slow."

While November's job gains roughly kept pace with population growth, a
more positive glimmer can be found in the upwards revisions of the past
two months of employment growth. Job growth for September was revised
up to 210,000 from 158,00, and October's gains were up to 100,000 from
80,000.

120,000 may not be 250,000 -- the lowest number most economists look
to for a really healthy recovery -- but it's also better than zero, the
headline number of new positions created in August, when fears of a
double-dip recession really began to take hold.

"We've got a modest acceleration and more employment growth then we
saw over the summer," said Nigel Gault, Chief US Economist at IHS Global
Insight, a firm offering economic and financial analysis, forecasting
and market intelligence.

Domestically, Gault said, things haven't turned out as bad as people
feared. But the global picture emanating from Greece and China looks
darker. "At the moment, the U.S. is doing better than most of the rest
of the world. But let's say Europe drops into recession. How far and how
long could we outperform them?"

Job
gains came in retail, hospitality, health care and business services,
with modest gains in temporary work -- which can sometimes be an
indicator of future job growth. Manufacturing employment -- once
heralded as the shining star of the recovery -- has remained essentially
flat since July. Meanwhile, state and local government continued to
shed jobs.

The job gains are not coming in primarily high-wage industries, and
annual average wage growth is not keeping pace with inflation. Worker in
the retail sector -- which had the biggest gains last month -- pull in
median hourly wages of $10.94 an hour, according to the Labor
Department, and that sector's growth is one factor that explains the 2
cents dip in average hourly earnings last month. Another key factor is
that the weak labor market provides employees little leverage to bargain
with their employers over pay, economists said.

Two million Americans have been out of work for 99 weeks or more --
up from 1.5 million last November -- according to the Bureau of Labor
Statistics. The percentage of workers who are working part time but
still seeking full-time work is also up from a year ago, according to a recent Gallup poll.

U.S. November Underemployment Up From a Year Ago

Editor's note: This article has been updated to reflect interviewing through Nov. 30. The general conclusions remain the same.

PRINCETON, NJ -- Underemployment, a measure that combines the
percentage of workers who are unemployed with the percentage working
part time but wanting full-time work, is 18.1% in November, as measured
by Gallup without seasonal adjustment. That is up from 17.8% a month ago
and 17.2% a year ago. Many employers appear to have chosen to hire
part-time rather than full-time employees for this holiday season.

Unemployment, as measured by Gallup without seasonal adjustment, is
8.5% in November -- up slightly from 8.4% in October, but down from 8.8%
a year ago. Gallup's unemployment measure suggests the government is
likely to report essentially no change for November 2011 in its
seasonally adjusted unemployment rate.

An additional 9.6% of U.S. employees work part time but want
full-time work, up from 9.4% in October. The current reading is
significantly higher than the 8.4% of November 2010.

November Job Creation Index Remains Relatively Strong

Gallup's Job Creation Index for the week ending Nov. 27 is +15, based
on 33% of workers nationwide saying their employers are hiring and 18%
saying their employers are letting workers go. Gallup's Job Creation
Index remains near its weekly high for the year (+16) and is consistent
with jobless claims running below 400,000 during recent weeks. The index
is far above the all-time weekly low of -11 measured in April 2009, but
also below index values approaching +30 measured in early 2008, just
after Gallup began tracking hiring and firing.

And the U.S. economy still needs to regain more than 6 million jobs
lost during the recession -- plus some 4.6 million jobs to account for
population growth -- to reach pre-recession employment.

It's stark numbers like these that have led economists to dub the
years since the Great Recession officially ended "the jobless recovery."

"After previous recessions, hiring soared. What has come roaring back
this time is profits. They've reached a peak," said Gary Burtless, an
economist at the Brookings Institute.

While many Occupy Wall Street protest camps have been cleared around
the country, the income inequality that brought thousands of Americans
to the streets since mid-September remains as strong as ever, according
to this latest government snapshot. And even if job growth began to
rebound in coming months, that income inequality, which has been growing
for decades now, would still remain.

"Even if we could magically return to where things were in 2007 and
the issues of the housing market disappeared, we would still have the
three decades of cumulative growing inequality problems," said Lawrence
Katz, Professor of Economics at Harvard University.